That said, welcome to Pump and Dump Friday, where every week we identify a few of the potentially bogus promotions going on in penny stocks today.
If you dont know how these schemes work, be sure to check out this free report that exposes the whole thing.
Now without further ado, here are this weeks “disasters waiting to happen”:
I have two words for the rip-off artists over at Penny Stock Wizard Lawyer Up.
Theyre running a pump and dump promotion on a company with no revenue or earnings SEFE.
Now, I covered SEFE a bit on Tuesday and will get back to the company in a minute.
First, I want to call out the talentless hacks over at the pumpers parent company, Stock Digest LLC. They had the gall to steal our free report for Penny Stock Research subscribers!
Sure, they changed a couple of words to make it slightly different and of course they added in SEFE as the next Apple. But fellas, thats plagiarism and copyright infringement. End of discussion. I suggest you take down your report and write your own.
Good luck with that
What, did you think we wouldnt catch on to your scam? Please, this is what we do penny stocks!
Not only did these amoral jokers steal our real research report, they collected over $2 million to produce a research report and pump shares of SEFE.
Take a look at their disclaimer in tiny font
If you still cant read the font, basically it tells you the company paying Stock Digest, Speed Evolution, Ltd holds 2.7 million shares of SEFE. Listen, if I got paid that much, Id somehow convince you the sky was green! So dont believe a word theyre spewing.
Let me give you the dirt on SEFE because the pumper wont.
SEFE was founded in 2008 and has yet to produce a commercially available product. Theyre trying to build atmospheric energy converters but have yet to get anything more than a prototype. I personally have worked with companies that have ground-breaking technology in commercial form and its still challenging to make money!
In fact, in their latest financial report, they had this to say
Our technology is new and commercially untested and there can be no assurance that the Company can develop commercially salable products.
So what else did SEFE report in their financials?
Well, the obvious top line $0 in revenue was there. And of course, the losses have been mounting. With no revenue, SEFE reported a net loss of $538,413 in 2010 and $1,088,723 in 2011. Thats going the wrong direction!
If SEFEs management cant even confirm theyre going to produce a saleable product, then why is the stock trading at over $1.20?
The pumping of course!
In their research reports both written by partner companies the pumper gives pie-in-the-sky price targets of $6 and even $12 per share.
Uh, fellas its clear youve never done any real financial reporting, and certainly youre no stock analysts. It seems all you really have is a ripped-off version of our legit free report and youve turned it into garbage.
So whos behind Stock Digest anyway? Take a look at who signed off on this free report
Remember, this guy recommended you buy SEFE. And he was paid over $2 million to do it!
I recommend you stay far, far away from SEFE!
Sunpeaks Ventures (SNPK)
It seems theres one big happy pumping family running game on SNPK.
In fact, a press release was put out by none other than above-mentioned Penny Stock Wizard. They must be working in concert with the main pumping group for SNPK.
This press release highlighted both SEFE and SNPK at the same time A Tale of Two Stocks: SunPeaks Ventures Inc. (SNPK) and SEFE Inc. (SEFE).
It should read, A Tale Of Two Pump & Dumps: SEFE, SNPK. But I guess they cant fleece anyone with a title like that.
Either way, it looks like a multi-headed hydra attacking unsuspecting investors.
Going back to when I first exposed this pump and dump, I told you Now SNPK shares just may run pretty far, and theyve already started to. Shares were up to $0.66 just yesterday, a 12.6% gain on the day.
Lets look at the chart
Clearly, I was right. The stock has soared since the pumping began. But whys the stock gone up?
New products for added revenue? Not a chance!
SNPK filed their 2011 year-end financial report and disclosed theyve lost $45,982 for the last 6 months of the year. In fact, theyve accumulated over $244,000 in debt since they began in 2009!
If the stock is going up, its only because the pumpers are releasing news with little to no real impact. SNPK signed a letter of intent to distribute to Russian Pharmacies.
A letter of intent who cares? That means nothing.
Wait, wait Ive heard this line before.
Oh yeah, these are the same guys who pumped NSRS back in January the notorious Bright Tech Media (they changed their name from Free Penny Alert, LLC to fool you).
For NSRS, they touted the companys new intent letter to dig in Chihuahua, Mexico. That was the last we heard from NSRS back on March 9th.
And speaking of NSRS, take a look at their chart for comparison to SNPK
Does the first half of this chart look exactly like SNPK? Yeah, its kind of disturbing.
It shouldnt surprise you though. Its the same team of pumpers doing the same job with a different company. It makes you wonder if company insiders are in on the game.
Personally, Id be shocked if they werent.
Im making a bold call right here and right now
SNPK under a $1 by April 23rd!
Thats right six weeks is almost up and the pumpers must move on to their next target. Theyre just about ready to cash out leaving you holding the bag once again.
If youre holding shares dump them today, right now! Otherwise, youll be holding a stock with a chart like NSRS in no time!
Gamma Pharmaceuticals (GMPM)
Heres our final pump and dump scheme for the day, GMPM. And what a POS stock this is
For starters, the company is being promoted by David Cohen and RDI, LLC. And over $100,000 has been spent to coerce you to buy shares.
But Gamma is nothing more than all talk and no action
For starters, GMPM hasnt filed a single earnings report since July 2010 for the 2009 year! So we know nothing about the companys finances for the past 3 years. Not really what I call investment grade.
And what they did file showed theyd lost $1.5 million for the first 6 months of 2009. Thats after losing $2.1 million the year before!
The only SEC filings since then (or any financial filings) are ownership changes after fights between board members.
On September 13, 2011, shareholders holding 52.04% of the outstanding shares of common stock of Gamma Pharmaceuticals Inc. (Gamma) removed Hao Zhang from Gammas Board of Directors.
All weve seen since then is the pumping Press Releases about GMPMs male enhancement and energy gel products. And that just started this month (with the pumping).
With no financials to work off of, its hard to argue this company has any value at all. So steer clear of GMPM shares, no matter what you read!
A final word (and warning).
These are just a few of the potential pump and dumps we’ve seen lately.
Remember, theres a lot more of this going on each week than we highlight here.
As you know, penny stocks are a great place to invest your money. You just have to do your due diligence to stay away from all the schemes and scams out there these days!
Until next time,
Category: Pump & Dump Alerts